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SEARCHWELCOME TO 2 TO 10: a new category of salons. It’s where many of the most-respected salons play.
WELCOME TO 2 TO 10: a new category of salons. It’s where many of the most-respected salons play. It includes powerful local and regional salon brands that are giants in the industry and in their communities.
What do they have in common? They each have between 2 and 10 locations and a hunger for performance benchmarks. Although these companies make up 80 percent of salon industry ‘chains,’ financial data for this category has been largely unavailable—until now.
Last year, fueled by a passion to fulfill the needs of my multi-location clients, Qnity launched The 2 to 10 Project, a research study to identify the financial benchmarks and best practices unique to multi-location salons. We collected and performed analysis on the financial statements of 14 salon companies in 2011.
In year two, we expanded the study to include 29 salon companies and incorporated a 50-question survey to determine best practices. Our study comprised an incredibly diverse group representing $264 million in revenues and crossed both regions and product affiliations.
Each study participant received a confidential “Find the Money” scorecard rating 15 different performance factors and benchmarking their business compared with the group using real P&L data.
With sponsorship help from the International SalonSpa Business Network (ISBN) and SALON TODAY, we hosted a half-day private workshop at the ISBN conference in April, which was accessible to 2 to 10 Project participants and invited guests. At that time, we presented the full research results from the study.
Participants are able to use 2 to 10 Project findings to stretch themselves and their teams to greater success. As one owner said, “It was an eyeopener!
I took the information and utilized it immediately to tighten up our processes and improve our bottom line.”
The 2 to 10 salon category is incredibly compelling. Because of economies of scale, these companies offer owners greater financial opportunity, yet they are small enough to preserve the personality, vision and culture of the individuals who launched them.
While much of the data is confidential to the study’s participants, we will highlight key findings from the study in this SALON TODAY column throughout the year. These profiles and best practices from select salon brands will help you evaluate and capture opportunity within your own business.
Thanks to the salons who trusted us with their financials and for taking time to complete the survey. Without your help, the 2 to 10 Project never would have been possible. To be considered for the 2013 study or to receive a 2 to 10 whitepaper, contact us at info@qnityinc.com.
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